GE Tumbles Most in Three Months as Power-Unit Woes Sap 2019 Cash
- Manufacturer has to ‘pay the piper’ in revamp, Culp says
- Company’s industrial free cash flow last year was $4.5 billion
Source: T. Rowe Price Group, Inc.
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General Electric Co.’s new boss warned of additional cash problems at the ailing company, eroding confidence in a nascent turnaround and sending the shares tumbling.
Cash flow from GE’s industrial operations will be negative this year as GE grapples with further challenges in its power business and other operational pressures, Chief Executive Officer Larry Culp said Tuesday at an industry conference. That’s a sharp drop from 2018, when the maker of gas turbines and jet engines brought in $4.5 billion by the closely watched measure.